Microsoft Dynamics provides a robust Fixed Asset module for tracking and depreciating a company's assets. Part of the Fixed Asset module includes a routine to process asset additions, retirements, and depreciation through to the general ledger. This GL Posting routine sends all of the related asset transactions to the general ledger as a single transaction in a single batch.
When firms make errors with fixed assets it is almost always in the addition or retirement of an asset. The key to preventing errors is to review fixed asset transactions prior to posting to the general ledger. Depreciation amounts are small enough in relation to the value of an asset that depreciation errors for a single asset typically won't be material to the company's financial statements. New assets, however, can represent millions of dollars in value and can affect the correctness of a firm's financials.
Typically, companies have a small number...